On Tuesday, June 5, 2012, Parks, Chesin & Walbert scored a decisive victory for Seven Oaks Academy of Lilburn, Georgia, successfully defending the small daycare against a former employee’s appeal of the District Court’s Order dismissing her lawsuit. The plaintiff’s claims, which grew out of allegations of religious discrimination, included religious harassment, hostile work environment, civil conspiracy, and negligent hiring and retention, and sought the statutory maximums in compensatory and punitive damages.

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It is a common misconception among employers that simply paying a salary avoids the burden of paying overtime wages. Failing to properly classify salaried employees can have devastating consequences, including liability for unpaid overtime wages for highly compensated employees who routinely work well over 40 hours per week.

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The Fair Labor Standards Act (“FLSA”) is one of the key protections for American workers. It sets a price‑floor by means of the minimum wage, and it reduces the hours that Americans are required to work by requiring overtime pay for hours above forty per week. However, when the law was drafted in the 1930s, Congress realized that certain jobs either required extremely long hours or were traditionally compensated in unique ways. For example, sailors generally are on-call or working 24 hours a day when they are at sea, and Congress decided that requiring overtime pay for these employees would threaten an important part of the American economy. For different reasons, Congress exempted “outside” salespeople from the FLSA because such employees spend a lot of time travelling and they are generally paid on a commission basis. According to Congress, it didn’t make sense to require that these employees be paid overtime. Alongside these examples, the drafters of the FLSA included various other exemptions that made sense from an economic standpoint.

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The FLSA is a broadly remedial statute that was designed with the dual goals of raising wages for the economically vulnerable while at the same time increasing employment. To accomplish these goals, the FLSA renders illegal any employment contract involving wages that are lower than the minimum wage or for wages that do not include overtime payments for hours worked above forty per week. As a result, some employers are tempted to work around the FLSA by maintaining that their workers are actually “independent contractors.” While it is true that the FLSA does not apply to bona fide independent contractors, most employers who attempt the “independent contractor” strategy do so at their own peril. This is so because the concept of “employment” under the FLSA is astonishingly broad, and a worker could be an “employee” under the FLSA who would be considered an “independent contractor” under the common law or other federal statutes.

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When employees initiate lawsuits after separating from employment, they must typically meet certain burdens if they seek money damages, including a demonstration that they mitigated, or limited, their damages by pursuing a diligent job search. While this “duty to mitigate” damages is used routinely to limit back pay awards in discrimination cases, the defense seems to have a slightly different character in FLSA cases. In fact, courts appear to be divided as to what it actually means in FLSA litigation (and whether it applies at all). Some FLSA claims arise in cases of retaliatory termination for engaging in protected activities like demanding unpaid wages. This is analogous to both discriminatory discharge and retaliation for engaging in activities protected by discrimination laws. However, FLSA cases also present when employees have lost earnings but remain employed, and this scenario complicates the arguments for a reduction of back pay awards in FLSA suits under the theory of the plaintiff’s duty to mitigate.

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Once terminated, former employees are often surprised to hear the employer’s reasons for termination. In many cases, former employees feel that the reason given for termination is unfair, deceptive, or simply a lie. To make things worse, employers don’t always provide a clear reason at the time of the firing. Sometimes the employee hears the reason for the first time when applying for unemployment benefits. Sometimes they may not hear the reason until they apply for a new job and the prospective employer checks their references. However, this does not mean that the reason given is defamation or slander.

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For those interested in Workers’ Compensation, check out atlantaworkerscompblog.com. Attorney Seth Bader has put together a blog for everyone from claimants to their attorneys, and I’m sure defense counsel could learn something too. Among other useful resources, the blog has a comprehensive list of forms published by the State Board of Workers’ Compensation, as well as some interesting posts answering common questions and recent news. The Bader Law Firm also provides exceptional representation, so tell your friends.

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The issue of “standing” is omnipresent in environmental law, and it often determines the outcome of cases–or, perhaps more accurately, whether the plaintiff will even be able to bring a case. The concept of standing basically says that only a person who has been injured in some way should be able to bring a lawsuit to enforce her rights. This is simple to apply in simple situations, such as car accidents or assaults, but it gets complicated in environmental law, where the injuries are less concrete and are harder to trace to their source. (Hint: the words “concrete” and “traceable” are going to be thrown around a lot when you’re talking about standing).

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